Cost pass-through scenario
A cost shock, the price response by segment and its timing, and the margin path in between.
The business question
If input costs jump, what price response do we take, where and when?
What it does
Models a cost shock by input, the pass-through rate by segment and its timing, and the margin path month by month in between. Scenarios can be compared before one is chosen.
What’s inside
Composed from the platform’s own objects, so it is a configuration you can open, not a document.
- Scenario: cost shock by input
- Ruleset: pass-through rate by segment
- View: margin path by month
Uses these metrics
The measures that call for this template when they move, each with its own page.
- Net price changeMetricAct when: A move over x% in one month, or the same direction for y months
- Cost of raw materialsMetricAct when: Up over x% in one month, or a steady rise over a quarter
- Interest ratesMetricAct when: A rise over 50 bps in a market
- Tariff and trade changesMetricAct when: Any new measure in a market you source from or sell into
Commercial context required
What Revomo reads to run it. Everything else in the template is derived from these records.
- The governed commercial context: customers, products, transactions, prices, costs and agreements
Relevant industries
See this template in Revomo.
We will show the Cost pass-through scenario running on representative data, or on a slice of your own, and what it would take to run it on yours.